Hardware Retailing The Industry's Source for Insights and Information
Houzz Inc. released the 2025 U.S. Houzz & Home Study, a report surveying over 22,000 U.S. homeowners about remodeling, building and decorating activity.
The study found 54% of homeowners renovated their homes in 2024 at a median spend of $20,000. Overall median spend decreased from its peak of $24,000 in 2023 and remains above the $18,000 spent in 2018.
Kitchen and primary bathroom renovations followed a similar trend with softening median spend, with kitchens down 8% year over year and bathrooms down 13%, but major remodels of kitchens and bathrooms continue to propel the market.
Median spend on major renovations for large kitchens (200 square feet or more) remained steady at $55,000 and large bathroom renovations (100 square feet or more) held at $25,000. Investment in major renovations of smaller spaces grew, with small kitchens (200 square feet or less) rising by 9% to $35,000 and small primary bathroom renovations (100 square feet or less) reaching $17,000, up 13%.
“The softening in renovation spend reflects the impact of elevated borrowing costs and the rising prices for everyday goods and services, which limit how much homeowners can allocate toward home improvements,” says Marine Sargsyan, Houzz staff economist. “What stands out, however, is homeowners’ ongoing demand and consistent investment in sizable kitchen and bathroom upgrades. Perhaps even more telling, notable growth in spend on smaller spaces signals that even amid economic pressures, homeowners are prioritizing meaningful improvements no matter the size of the home.”
Professional hiring remains widespread, with 90% of homeowners choosing to work with professionals and 49% of homeowners reported hiring specialty service providers, up from 46% in 2022.
Financial data from the study shows homeowners are most frequently pulling from savings for renovation projects and secured home loans fund 12% of projects. 56% of homeowners are committed to living in their homes long-term, with 61% planning to stay in their homes for at least 11 years following their project completion.
Baby Boomers and Gen X homeowners lead in renovation activity, with similar spending to the national median of $20,000 each. More renovating Millennials are beginning to buy homes, with 36% living in their homes for six or more years.
53% of renovating homeowners updated their outdoor spaces in 2024, completing around two outdoor projects on average. Other projects include work on beds and borders (29%), lighting systems (23%) and security systems (18%). Homeowners are also investing in decks, sheds and workshops (8%) and gazebos and pergolas (7%). Built-in outdoor kitchen popularity rose 2% from 2023, but remains a niche addition.
